SHENZHEN AIRLINES ACCEPTED AS FUTURE STAR ALLIANCE MEMBER CARRIER

Alliance Expands in China

SHENZHEN, China - July 6th, 2011 - Star Alliance, the way the Earth
connects, today announced that its Chief Executive Board (CEB) has unanimously approved the application of Shenzhen Airlines to join Star
Alliance.

Jaan Albrecht, CEO Star Alliance said: "With the approval of our Chief Executive Board (CEB) we today formally start the integration process of Shenzhen Airlines, which upon completion will allow Star Alliance to once again enlarge its offer across Mainland China and neighbouring countries."

Bringing Shenzhen Airlines into the Alliance is part of a long-term strategy to expand the Star Alliance network into the future growth markets, thus providing the international traveller with optimal flight options. In the case of China, the foundation for this strategy was set many years ago, by those Star Alliance member carriers who have been successfully serving this market for several decades. As a result, the Alliance was able to welcome Air China into the family in December 2007.

Albrecht added, "Shenzhen Airlines is the fifth largest airline in China operating from the fifth busiest airport in the country. In conjunction with Air China, we will be growing our customer offer especially in the southern part of China."

Through its future membership in Star Alliance, Shenzhen Airlines will be able to offer its customers access to a global network, along with seamless travel and status recognition within the various member carrier frequent flyer programmes.

Feng Gang, the president of Shenzhen Airlines said: "Joining Star Alliance will help Shenzhen Airlines in its mission to build on its strength of a well-known national carrier, while implementing its strategy of establishing itself as a strong brand across the Asia-Pacific region and beyond."

The integration teams at Shenzhen Airlines and Star Alliance have already begun the work that needs to be completed before a new airline can join the Star Alliance network. Air China will be assisting in this process.

Kong Dong, Air China Chairman said: "As the mentor of Shenzhen Airlines, Air China will provide its full support and assistance in facilitating the success of Shenzhen Airlines' integration into the Star Alliance Network by the end of 2012. Besides, Air China and Shenzhen Airlines will actively participate in Alliance activities and initiatives, and work closely together with all member airlines to achieve win-win cooperation".

Shenzhen Airlines will add five new destinations to the Star Alliance network in China: Juzhou (Zhejiang Province), Linyi, Qinhuangdao, Shijiazhuang, and Zhoushan. In total, the Star Alliance network will then encompass a total of 32 carriers (the current 27 and five future members), offering a choice of more than 23,000 daily flights to 1,315 destinations in 190 countries.

About Star Alliance:
The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognised by numerous awards, including the Air Transport World Market Leadership Award, Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Adria Airways, Aegean Airlines, Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, Blue1, bmi, Brussels Airlines, Continental Airlines, Croatia Airlines, EGYPTAIR, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAM Airlines, TAP Portugal, Turkish Airlines, THAI, United and US Airways. Air India, Avianca-TACA, Copa Airlines, Ethiopian Airlines and Shenzhen Airlines have been announced as future members. Overall, the current Star Alliance network offers 21,000 daily flights to 1,160 airports in 181 countries.

About Shenzhen Airlines:
Shenzhen Airlines Co., Ltd, was founded in November 1992 and started operations on September 17 of the following year. With Air China and Shenzhen International Total Logistics (Shenzhen) Co, Ltd as its major shareholders, Shenzhen Airlines focuses on business of passenger, cargo and mail transportation. Up to January 2011, Shenzhen Airlines owns a fleet of more than 100 passenger and cargo aircraft which consists of Boeing 747s and 737s, and Airbus A320s and A319s, who are flying on over 200 domestic and international routes. According to Shenzhen Airlines' development blueprint, it will expand its fleet to 180 passenger aircraft by the end of 2015. It also plans to introduce wide-body aircraft in due course. The company will forge itself into a well-known national carrier with its independent brand among competitors in Asia-Pacific region. In future, its service network will extend across Asia and other continents.